COMPANY DASHBOARD – FIRM L – PERIOD 2

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FINANCIAL REPORT – FIRM L – PERIOD 2
The financial statements of firm L published for Period 2 have been prepared on December 31st, Period 2 in accordance with International
Financial Reporting Standards (IFRS), as adopted in the Markstrat world.

Company Profit & Loss Statement

The table below shows the evolution of firm L financial results in thousands of dollars, as well as the cumulative results since Period 0.
Period 2 Period 1 Period 0 Cumulative
Revenues 46,984 46,204 38,533 131,721
Cost of goods sold -22,605 -23,392 -20,406 -66,403
Inventory costs -280 -373 -521 -1,174
Contribution before marketing 24,099 22,438 17,607 64,144
Advertising expenditures -4,430 -3,826 -3,000 -11,256
Commercial costs -3,535 -3,190 -2,478 -9,203
Contribution after marketing 16,134 15,422 12,129 43,685
Market research studies -58 -83 -245 -387
Research and development -5,250 0 0 -5,250
Loan reimbursed 0 0 0 0
Loan received 6,000 0 0 6,000
Loan interest paid -360 0 0 -360
Exceptional cost or profit 0 0 0 0
Earnings before taxes 16,465 15,339 11,884 43,688

Brand contribution
The table below shows a comparison of the net contribution generated by the brands marketed by firm L in Period 2.
LIKE LIME
Clinites Clinites
Revenues 28,725 18,259
Cost of goods sold -14,005 -8,600
Inventory holding cost 0 -280
Inventory disposal loss 0 0
Contribution before marketing 14,720 9,379
Advertising media -2,200 -2,230
Advertising research 0 0
Commercial costs -1,857 -1,677
Contribution after marketing 10,662 5,472

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Marketing results
The section below provides key marketing results for each of your marketed brands

Market Shares
LIKE LIME
Clinites Clinites
Volume Market Share 10.8 % 3.4 %
Value Market Share 9.3 % 6.3 %

Market Shares
LIKE LIME
Clinites Clinites
Volume Market Share 10.8 % 3.4 %
Value Market Share 9.3 % 6.3 %

Distribution Coverage
The distribution coverage figures in the chart and table below represent the proportion of distributors who carry a given product. The report
gives the information for each brand currently on the market. The number of distributors in each distribution channel is provided as well.
LIKE LIME
Clinites Clinites
Mass Merch. 46 % 9%
Specialized mass 39 % 34 %
Dept. Stores 19 % 45 %
Beauty Portals 30 % 30 %

Mass Merch. Specialized mass Dept. Stores Beauty Portals

Number of distributors 12,166 2,044 10,277 10

Brand prices
The table below shows the prices in $ of your marketed brands. The Recommended Retail Price is the price that you specified in your
marketing mix decisions. The Average Retail Price is the average end-user price, taking into account the discount offered by distributors.
Finally, the Average Selling Price is equal to the Average Retail Price minus the distribution margins.
LIKE LIME
Clinites Clinites
Recommended Retail Price $12 $24
Average Retail Price $11 $23
Average Selling Price $7 $15

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Loans and Budget Changes
The left table below summarizes the loans and/or budget changes that were granted to your company by the instructor. The other table
provides the past and future payments made by your company to reimburse the loans. The first column shows the reimbursement of the
capital borrowed; the second columns shows the interests paid in the period; the third column indicates how much capital remains to be
reimbursed at the end of the period.
Budget increase (K$) Budget decrease (K$) Loan capital borrowed (K$) Loan Duration Interest rate (%)
Period 0
Period 1
Period 2 6,000 8 6
Period 3
Period 4
Period 5
Period 6
Period 7
Period 8
Period 9
Period 10

Capital reimbursed (K$) Interest paid (K$) Capital remaining (K$)

Period 0
Period 1
Period 2 0 360 6,000
Period 3 606 360 5,394
Period 4 643 324 4,751
Period 5 681 285 4,070
Period 6 722 244 3,348
Period 7 765 201 2,583
Period 8 811 155 1,771
Period 9 860 106 912
Period 10 912 55 0

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PRODUCTION REPORT – FIRM L – PERIOD 2
The report below provides with information on production levels and production costs for each of the brands marketed in Period 2.

Sales, Production and Inventory

The chart below shows the units sold , the production level and inventory level for each of your brands at the end of Period 2. All numbers are
given in thousands of units.

The table below provides you with additional details such as planned production versus the actual one, and the inventory levels at the
beginning and at the end of Period 2. All numbers are given in thousands of units.
LIKE LIME
Clinites Clinites
Units sold 3,947 1,259
Production Plan (your decision) 4,000 1,400
Production 3,947 1,120
Inventory at beginning of period 0 673
Inventory at end of period 0 534

Unit Cost, COGS and Inventory Holding Cost

The table below shows the unit transfer cost for each of your marketed brands. The “current“ unit cost is the cost of the most recently
produced units, while the “average” unit cost takes into account the units that were in your inventory at the beginning of the period. Unit
transfer costs are given in $; units sold in thousands of units. COGS (Cost of Goods Sold) are equal to “Units sold” x “Average unit transfer
cost”. COGS are given in thousands of $. Finally, this table shows the costs incurred for holding your inventory (storage cost, cost of capital, …).
Inventory holding cost is equal to: “Units in inventory” x “Average unit transfer cost” x 8%. It is given in thousands of $.
LIKE LIME
Clinites Clinites
Current unit transfer cost 3.5 6.6
Average unit transfer cost 3.5 6.8
Units sold 3,947 1,259
COGS 14,005 8,600
Inventory at end of period 0 534
Inventory holding cost 0 280

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R&D REPORT – FIRM L – CLINITES MARKET – PERIOD 2
This report provides information on the activities conducted for your division by the R&D department during Period 2.

Projects completed in Period 2

No projects have been completed in Period 2.

Projects completed in past periods

The projects listed below have been completed in past periods. The ones at the top are currently used as the production platform of one or
several of your marketed brands. The ones in italic, if any, are either no longer used or have never been used to produce a brand.
Available Efficacy Safety Packaging Pleasure Usability Current Minimum Cumulative Platform of
Since (1) (2) (3) (4) (5) Brand
PI- Period 0 42 33 51 60 69 5.02 3.91 1,500 LIKE
LIKE
PI- Period 0 69 78 42 49 46 7.54 4.80 2,000 LIME
LIME
(1) Efficacy (Index): From 10 To 100. (2) Safety (Index): From 10 To 100. (3) Packaging (Index): From 10 To 100. (4) Pleasure (Index): From 10 To 100. (5)
Usability (Index): From 10 To 100.

Projects partially developed in Period 2

You have no partially completed projects.

Shelved projects
You have no shelved projects.

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R&D REPORT – FIRM L – NUTRITES MARKET – PERIOD 2
This report provides information on the activities conducted for your division by the R&D department during Period 2.

Projects completed in Period 2

The projects listed below have just been completed and can be used to launch new brands or upgrade new ones
Available Clinical Benefits Nutrition Packaging Flavor Variety Current Minimum Cumulative
Since (1) (2) (3) (4) (5)
PULINK Period 2 15 55 15 35 20 4.87 4.87 5,250
(1) Clinical (Index): From 10 To 100. (2) Nutrition (Index): From 10 To 100. (3) [Packaging] (Index): From 10 To 100. (4) Flavor (Index): From 10 To 100. (5)
Variety (Index): From 10 To 100.

Projects completed in past periods

No projects were completed in past period.

Projects partially developed in Period 2

You have no partially completed projects.

Shelved projects
You have no shelved projects.

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DECISION REVIEW – FIRM L – CLINITES MARKET – PERIOD
2
This report provides a review of the decisions made by firm L at the beginning of Period 2.

Resource Allocation Overview

The three charts below show how resources have been allocated across markets, functions and brands. All numbers are given in thousands of
dollars.

Brand Portfolio
LIKE LIME
Portfolio operation Maintained Maintained
Base project past period PI-LIKE PI-LIME
Base project this period PI-LIKE PI-LIME

Marketing Mix
LIKE LIME
Production planning (in units) 4,000,000 1,400,000
Recommended retail price (in $) 11.75 24.00
Advertising media (in K$) 2,200 2,230
Advertising research (in K$) 0 0

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Segmentation Strategy
LIKE LIME
High Earners 100 %
Affluent Families
Med. Income
Low Income
Singles 100 %

Perceptual Objectives
LIKE LIME
Dimension 1 Economy Economy
Position 1 7.00 -8.00
Dimension 2 Convenience Performance
Position 2 1.00 11.00

Commercial Team Size

The table below shows the number of commercial people allocated to each brand in each channel during Period 2.
LIKE LIME
Mass Merch. 15 2
Specialized mass 20 15
Dept. Stores 5 20
Beauty Portals 3 3
The two charts below show how your commercial team is allocated across channels and brands. All numbers are given in number of
salespeople.

Merchandising
The table below lists the merchandising budget allocated to each brand in each channel during period 2
LIKE LIME
Mass Merch. 350 50
Specialized mass 475 330
Dept. Stores 70 400
Beauty Portals 30 30

Market Research Studies – Clinites Market

The table below lists the market research studies purchased by firm L in Period 2, as well as the cost in dollars.
Purchased Studies Cost in $
Conjoint Analysis 37,250

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DECISION REVIEW – FIRM L – NUTRITES MARKET –
PERIOD 2
This report provides a review of the decisions made by firm L at the beginning of Period 2.

Resource Allocation Overview

The three charts below show how resources have been allocated across markets, functions and brands. All numbers are given in thousands of
dollars.

R&D projects
The table below lists the projects which the R&D Department will develop in Period 2
Project Objective Clinical Nutrition Packaging Flavor Variety Requested Base Allocated
Benefits (1) (2) (3) (4) (5) Cost ($) Budget (K$)
PULINK Target customers 15.00 55.00 15.00 35.00 20.00 0 5,250.00
are Families
(1) Clinical (Index): From 10 To 100. (2) Nutrition (Index): From 10 To 100. (3) [Packaging] (Index): From 10 To 100. (4) Flavor (Index): From 10 To 100. (5)
Variety (Index): From 10 To 100.

Online Query
The table below lists the online queries made to the R&D Department while making Period 2 decisions
Query Clinical Nutrition Packaging Flavor Variety Requested Base Requested Minimum
Benefits (1) (2) (3) (4) (5) Cost ($) Budget Cost
PULink 10.00 55.00 10.00 35.00 20.00 0 6,230.00 6.00
PULink 15.00 55.00 15.00 35.00 30.00 0 6,630.00 6.00
PULink 10.00 70.00 15.00 45.00 30.00 0 6,820.00 7.00
PULink 10.00 70.00 35.00 45.00 30.00 0 7,150.00 7.00
PULink 30.00 80.00 60.00 71.00 61.00 0 8,640.00 10.00
(1) Clinical (Index): From 10 To 100. (2) Nutrition (Index): From 10 To 100. (3) [Packaging] (Index): From 10 To 100. (4) Flavor (Index): From 10 To 100. (5)
Variety (Index): From 10 To 100.

Market Research Studies – Nutrites Market

The table below lists the market research studies purchased by firm L in Period 2, as well as the cost in dollars.
Purchased Studies Cost in $
Market Forecast 21,250
Advertising Experiment 26,500

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INDUSTRY DASHBOARD – FIRM L – PERIOD 2
Stock Market Period 2
SPI REV NC Cum. NC
Titans 1,442 63 23 50
SPA 1,300 56 19 47
Radiant 1,210 53 20 46
Maverick 1,207 51 18 47
Landmark 1,173 47 16 44
SPI: Share Price Index. Rev.: Revenues (million $). NC: Net Contribution (million $). Cum. NC: Cumulative NC (million $).

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INDUSTRY INFORMATION – PERIOD 2
This report provides economic and costing data for the current period as well as estimates for the next period.

Economic Variables
Current Period Value Next Period Estimation
GNP Growth Rate % 3% 3%
Inflation Rate % 2% 2%
Inventory holding cost per annum % Transfer Cost 8% 8%
Loss incurred for inventory disposal % Transfer Cost 20 % 20 %
Commercial people operating cost $ 21,224 21,649
Commercial people hiring and training cost $ 3,184 3,247
Commercial people firing cost $ 5,306 5,412

Market Research Costs

All Markets Clinites Nutrites
Industry benchmarking 32,500
Competitive Advertising 32,500 32,500
Competitive Commercial 16,250 16,250
Conjoint Analysis 38,000 38,000
Consumer Panel 108,250 75,750
Consumer Survey 65,000 43,250
Distribution Panel 65,000 54,000
Advertising Experiment 27,000 27,000
Commercial Experiment 38,000 38,000
Market Forecast 21,750 21,750
Multidimensional Scaling 38,000 38,000
Semantic Scales 10,750 10,750
TOTAL 32,500 460,500 395,250
(all numbers in $)

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MARKET REPORT – CLINITES MARKET – PERIOD 2
This report provides general information on the 12 Clinites brands marketed in Period 2.

Brand Retail Sales & Volume

The two tables below show the marketed brand retail sales (in thousands of $) and the volume (in thousands of units), sorted in decreasing
order. Shares of market in value and in unit are also provided
Brand Value Share Retail Sales Variation
TINY 12.0 % 55,988 16,141
RICH 10.1 % 46,697 12,815
SING 9.6 % 45,215 9,621
MINT 9.5 % 44,013 -396
LIKE 9.3 % 43,040 849
TIME 9.0 % 42,417 12,312
SILK 9.2 % 42,287 5,260
RISE 7.4 % 34,610 2,202
MISS 7.2 % 33,919 1,561
LIME 6.3 % 29,533 468
XIBU 6.2 % 28,246 -5,075
XILO 4.2 % 19,118 26
TOTAL 100.0 % 465,082 55,786

Brand Unit Share Volume Variation

TINY 15.0 % 5,483 1,753
MINT 11.8 % 4,330 335
RICH 11.5 % 4,199 1,593
SILK 11.4 % 4,161 1,087
LIKE 10.8 % 3,947 164
XIBU 9.3 % 3,411 -310
SING 6.7 % 2,443 782
XILO 6.1 % 2,248 208
TIME 6.0 % 2,193 1,051
MISS 4.0 % 1,445 118
RISE 3.9 % 1,444 112
LIME 3.4 % 1,259 151
TOTAL 100.0 % 36,565 7,043

Brand Characteristics
The table below lists the physical attributes of marketed brands, as well as their price and estimated unit cost, both in $.
Brand Launched Efficacy Safety Packaging Pleasure Usability Price Base Cost Base Cost
in (1) (2) (3) (4) (5) ($) (%Price)
LIKE Period 0 42 33 51 60 69 11.75 5 42 %
LIME Period 0 69 78 42 49 46 24.00 8 31 %
MINT Period 0 42 33 51 60 69 10.99 5 45 %
MISS Period 0 69 78 42 49 46 23.99 8 31 %
RICH Period 0 42 33 51 60 69 11.99 5 41 %
RISE Period 0 69 78 42 49 46 24.49 8 30 %
SILK Period 0 42 33 51 60 69 11.00 5 45 %
SING Period 0 69 78 42 49 46 19.00 8 39 %
TIME Period 0 69 78 42 49 46 19.75 8 37 %
TINY Period 0 42 33 51 60 69 11.00 5 45 %
XIBU Period 0 24 24 24 24 24 9.20 2 24 %
XILO Period 0 29 20 19 24 19 9.45 2 22 %
(1) Efficacy (Index): From 10 To 100. (2) Safety (Index): From 10 To 100. (3) Packaging (Index): From 10 To 100. (4) Pleasure (Index): From 10 To 100. (5)
Usability (Index): From 10 To 100.
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MARKET REPORT – NUTRITES MARKET – PERIOD 2
This report is empty as there is no brand on Nutrites market in period 2.

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ADVERTISING EXPERIMENT – NUTRITES MARKET –
PERIOD 2
You did not launch any brand in this market

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MARKET FORECAST – NUTRITES MARKET – PERIOD 2
This study provides estimates of the potential size of the market <b>if a brand were introduced next period</b>. Results are given for the
whole market and are also broken down by consumer segment. This forecast is based in declared likelihood of purchase obtained from a
sample of individuals. It should be noted that this forecast does not rely on history and tends to be less accurate and generally somewhat
optimistic.

Potential Total Market Size

The charts below show the potential market size next period and in five periods, <b>if a brand were introduced next period</b>. Market
growth rates are reported as well. Market sizes are given in thousands of units.

Potential Market Size by Consumer Segment

The charts below show the potential market size in one and five periods, <b>if a brand were introduced next period</b>. Results are broken
down by segment. Relative segment size, in % of the total market size, and segment growth rates are reported as well. Sizes are given in
thousands of units.

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Potential consumer segment sizes (in % of total market size)

Expected Consumer Segment Growth Rates (in % units)

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CONJOINT ANALYSIS – CLINITES MARKET – PERIOD 2
This study enables firms to estimate the relative importance of the price and physical characteristics of a product category. Only the three
characteristics that are perceived as most important are included in the study. The study also provides the utility attached by consumers to
varying levels of price and characteristics. Results are broken down by consumer segment.

Utility charts
The charts below show the utilities attached to four arbitrary levels in each dimension included in the study. Utilities are measured on a scale
from 0 (very low utility) to 1 (very high utility): the higher the utility the higher the preference of consumer for the corresponding level in this
dimension. The four levels have been chosen in the feasible range for the dimension so as to test varying levels of interest for the segment.
Results are broken down by consumer segment.
High Earners

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Affluent Families

Med. Income

Low Income

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Singles

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